ATLANTA, April 2, 2015 — Carolina Bank Holdings, Inc. (Nasdaq: CLBH), the parent company of Carolina Bank, announced it has entered into securities purchase agreements with select institutional investors related to its recent $15.1 million issue of convertible preferred equity.
FIG Partners arranged the private placement of 15,500 shares of the company’s Series B Non-Voting Convertible Preferred Stock at a price of $975 per share. Each share of the Series B Preferred Stock will automatically convert into 100 shares of the company’s common stock after it has received shareholder approval for the conversion at its annual shareholders meeting, which is expected to be held on or about May 19, 2015.
Robert T. Braswell, President and CEO of Carolina Bank Holdings, Inc., said: “We believe this reflects the market’s confidence in our company and management team and expect that this transaction will further strengthen our capital position and enhance our ability to capitalize on the opportunities ahead of us.”
The proceeds of the capital raise will be approximately $14.1 million and are expected to be used, subject to regulatory approval, to redeem the company’s outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A, and for general corporate purposes.
The full release from Carolina Bank is available here.